Darren Blasutti, CEO of Americas Gold and Silver, shared his thoughts at PDAC on the current price movements seen in precious metals.
At this year’s Prospectors & Developers Association of Canada (PDAC) convention, the Investing News Network caught up on the show floor with Darren Blasutti, president and CEO of Americas Gold and Silver (TSX:USA,NYSEAMERICAN:USAS).
Blasutti shared his thoughts on the current price movements seen in gold and other precious metals, comparing the atmosphere to the financial crisis of 2008/2009.
“As fear continues to pick up around the coronavirus, as fears pick up about a potential recession and what may come out of it, you will see gold continue to rise,” he said. “I think you will see a strong gold movement, and equities will follow with a bit of a delay, but they will follow.”
Speaking about how volatility impacts Americas Gold and Silver’s operations, Blasutti said the best action is to stay the course.
“I don’t think it really has a material impact to us,” he said. “I think where it really has a material impact is I bought some stock … we know the first asset class back is going to be gold and then gold equities.”
For Blasutti, one of the most important themes in precious metals this year will be consolidation.
“Companies need to get bigger — there needs to be less management, less G&A in these companies,” he said. “The bigger the company, the less impact it has when (financial) movements happen.”
In February, Americas Gold and Silver announced the first gold pour at its Relief Canyon operation in Nevada, just nine months after the start of construction in May 2019.
“I think that is pretty remarkable,” he said. “Within 12 months, being in commercial production and being profitable out of the mine is the next big milestone for us.”
Blasutti said that he expects to be in commercial production by the end of the second quarter.
“We are going from about 13,000 ounces of gold equivalent in 2019 to around 65,000 this year to 100,000 to 110,000 next year,” he said.
He also spoke about developments at the company’s Cosala operations in Mexico, as well as at its Galena complex in Idaho, which is being developed in a joint venture with billionaire Eric Sprott.
To learn more about Americas Gold and Silver’s upcoming milestones, watch the video above. You can also click here for our full PDAC playlist.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.